Cannabis brands and dispensaries have long relied on P2P, shortcode and toll-free numbers for text message marketing. But by January 2022, businesses on these channels must switch to 10DLC or risk service termination.
10DLC is an application-to-person (A2P) messaging channel that uses local, 10 digit phone numbers to send a high volume of text messages to customers. The goal of 10DLC messaging is to establish consumer trust by building a more compliant text messaging channel that filters harmful content and spam.
Leading with compliance and embracing new technologies in a highly-regulated industry like cannabis is key to scalable growth. Here’s how 10DLC will get you there – and why P2P, shortcodes and toll-free long codes won’t.
P2P (person-to-person) messaging is a two-way channel that sends texts at a low volume from a 10-digit number. Businesses that send A2P texts through P2P routes incur fines up to $10 per message. And since cannabis brands and dispensaries are frequent targets for TCPA violations, P2P will no longer be a viable text messaging channel.
Shortcodes are 5 or 6 digit phone numbers that send high volumes of outbound messages. But owning a dedicated shortcode can cost $12,000 per year – not including campaign and carrier fees. So while this might remain a legitimate channel for larger corporations, 10DLC messaging is a smarter choice for emerging cannabis brands and dispensaries who want to do more with their budgets.
10 digit toll-free numbers send messages through an application at high volumes. However, since they’re not sanctioned by MNOs (Mobile Network Operators), toll-free numbers are vulnerable to harsh fines for content violations. And for what it’s worth, toll-free numbers use 800 area codes (800, 888, 877) that are unfamiliar and foreign to local customers.
10DLC is a win for highly regulated industries like cannabis. It presents cannabis brands and dispensaries with more benefits and fewer risks than P2P, shortcodes and toll-free numbers. Here’s how:
Greater trust with customers
The main objective of 10DLC implementation is consumer protection, so content must be pre-vetted and approved. It’s how cannabis brands and dispensaries adhere to SHAFT and TCPA guidelines. To make it simple, Fyllo builds pre-vetted customized messaging templates to streamline and scale compliance for all future campaigns.
Faster message delivery and throughput
Cannabis brands and dispensaries that sign up for 10DLC messaging will receive a trust score based on a background check, EIN age, tax history and other factors. The purpose of this trust score is to establish a throughput rate at the campaign level, which is also known as messages sent per second (MPS). Businesses that receive a trust score of 66 or better with Fyllo can send 600 texts per minute, compared to just 10 on P2P messaging.
Additionally, 10DLC messaging is the most reliable channel for text message delivery, with an average rate of 90% among the three biggest mobile carriers (AT&T, T-Mobile and Verizon):
Supurb, an Arizona-based cannabis delivery service, needed a reliable text messaging channel capable of sending compliant campaigns to their 75,000 patients. After partnering with Fyllo to switch to 10DLC compliant messaging, Supurb saw a significant increase in message volume, growing message delivery from 452K in August to 572K in September, a 26% increase.
Adhering to 10DLC messaging compliance has its economical benefits. Evasive messaging techniques and content violations cost $1,000 and $10,000 per event, respectively. And beginning January 1, penalties for sending texts through a P2P channel will result in a $10 fine per message sent. With 10DLC messaging, complaint campaigns ensure cannabis brands and dispensaries can avoid future crackdowns, fines and service shutoffs.
Just like in any business, buying in bulk saves long-term costs. The same is true for 10DLC messaging, as inbound and outbound texts are $0.0025 per message for Verizon and $0.003 per message for T-Mobile and AT&T. For comparison, shortcodes cost $0.0075 per message, on top of paying $1,000 per month for a dedicated number.
Fortify your text message marketing strategy with 10DLC
Compared with other P2P and A2P channels, 10DLC combines the best of both worlds. It’s capable of high volume deliverability at an accessible rate for cannabis brands and dispensaries. And with compliance and consumer safety built into its core, it’s the most powerful and secure upgrade to text message marketing this decade.
The information provided is current as of November 1, 2021, and subject to change.